ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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COST APPROACH Definition
COST APPROACH is a general way of estimating a value indication of an individual asset by quantifying the amount of money that would be required to replace the future service capability of that asset.
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HYPOTHESIS is a proposition about cause and effect relationships. A hypothesis involves anticipating an effect, and a means of observing whether the anticipation is correct. A company’s strategy is based on a hypothesis – “If we do A, then B will result.” For example, a strategy map for a Balanced Scorecard explains the hypothesis behind an organization’s strategy.
STOCK ROTATION RIGHTS is a contractual stipulation that allows for a distributor to return up to a stipulated percentage of purchased goods to the supplier over a stipulated period of time. These rights are intended to ensure that a distributor is not overburdened with excessive or obsolete inventory from the supplier that granted the stock rotation rights.